1099
If you get 1099 - for a side business, what type of deductions (write-off) can you apply to your taxes or would they still fall under standard deduction?
Comments
-
Obviously it depends on the type of business. To be deductible, it has to be "ordinary and necessary." You are also able to use the standard deduction in addition to any business-related deductions.
-
Thank you for your question, Lidia.
I just want to add to the previous well-thought-out answer from JMSSGV. When receiving a 1099-NEC, you will be prompted to create a Schedule C to report the income and expenses from your side business. This is where you can deduct "ordinary and necessary" expenses generated from making your income from the business.
-
Thank you JMSSGV and CoryF. I have always done 1040 pretty basic form, nothing to complicated :) . And this year I started helping an art gallery being their bookkeeper and will be my first time doing my taxes with a 1099-nec, I am little familiar, but not to familiar as how it all entwines with my 1040. If there are any suggestion or advice, you could send my way I would appreciated.
Thank you for taking the time to respond.
-
IRS publication on business expenses.
